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fairly good repair, and also, but to a less extent, the effects of chang age composition of a population and in the mix of occupations as quence of population growth and industrialization. The demand el changes in taste, should they occur, are not known, however.
What the noneconomist often fails to see is that the consumer der food, as it is revealed by the behavior of households, is not nece demand for the nutritional requirements of an adequate diet. It si obvious that man eats foods, not nutrients. Nutritional "food budget no effect upon the demand for food until the nutritional inforn known by consumers and they make it a part of their preferences, < the government resorts to income measures and price incentives that demand toward better diets.
In regard to the supply of food, our knowledge of the factors processes that explain the increases in supply over time is far from tory. It is weak because the sources of economic growth are, in inadequately specified and identified; it follows that all too little i about the relative costs and returns from these several sources. E growth models that depend on national agricultural production aggre as yet not capable of explaining the processes that are at work alte supply of food. The production of food by agriculture, viewed as a process, accounts for most of it. Yet a large part of this proces explanation. The economic dynamics that characterize this set of prc activities are primarily a result of the availability of new classes o associated with the modernization of agriculture. However, it is dif get at the costs and returns pertaining to each of these inputs. A approximation, the following distinction is useful. Farmers cannot ol types of agricultural inputs that are necessary to modernize fron agriculture. Hence the key to this modernization is held by persons and public, other than farmers. Firms operating for profit, nonprofi agencies, and public bodies are all outside of agriculture in the sense t do not engage in farming.
It would require a monograph to examine adequately the supply but I am restricted to a brief overview of the farm and food-producin I shall attempt, however, to account for changes in the supply in tv tions: first, where agriculture is bound to traditional inputs and is in rium with respect to the economic opportunities that such input: second, where agriculture is in transition in adopting modem agr inputs and is in disequilibrium in exhausting the new economic oppo
*See for example the U.S. Department of Agriculture (USDA) Report, 7 Food Budget 1970 (13). The distinction between what consumers demand scientists recommend as an adequate diet is clearly presented in FAO, Indical Plan (4, Vol. 2, Chapter 13, paragraphs 74-76).c analysis rests on two interacting parts, the demand for